In response to Andrew Cadman: The tax change laying waste to our IT and construction industries,
THANK YOU! Nobody is talking about this but has seriously paralysed IT in the City.
So pleased to see this being discussed. One thing you missed was that the employed coder will in all probability be sent on training courses for new software at the company’s expense whilst the contractor will have to fund his own training. Deductible for the business but not for the contractor. I also gripe that I can no longer claim travel and subsistence against tax whilst my MP travels and resides at my expense.
This extension of IR35 will curtail the mobility of labour and close down innovation.
As others are pointing out, this is simply a grab for cash – albeit one that is likely to backfire. It is all part of a pattern – a few years ago HMRC changed its objective from collecting the correct tax according to the law (surely the correct approach for a supposedly-neutral government agency?) to maximising the tax taken as far as possible.
Still, I suppose someone has to pay for Johnson’s £200bn train set.